Eligible parents who welcomed home a baby last year, but did not receive any stimulus payment for their child could qualify for a third stimulus check for baby born in 2020. And the third stimulus check for the baby is a generous $1,100.
Most Americans have got their third stimulus check by now. But for many, the amount they expected and the amount they finally received did not match up. The reasons for it were many. But the main reason for this difference is that the initial check under the American Rescue Plan initiated by President Biden was based on the 2019 income tax returns. And this figure did not calculate several things, including a third stimulus check for babies. The baby born in 2020 third stimulus check for babies born between January 1 and December 31, 2020, is subject to certain limitations.
The figure is the sum of the amount that parents qualify for under the first and second rounds of stimulus payments. While the first stimulus payment was passed in the spring of 2020, the second round of stimulus checks was passed in late December 2020. They granted families $500 against the first round and $600 against the second round of stimulus checks.
Since both these stimulus payments were centered on the previous tax returns of 2018 or 2019, they naturally did not take into account babies born in 2020.
Baby Born In 2020: Third Stimulus Check Subject To Identical Limitations
You get the full amount if your earnings are within a certain limit. The third stimulus for babies born in 2020 begins to decrease beyond that income and is completely phased out beyond a certain amount. The limit, based on the adjusted gross income, is $75,000 for individuals. For couples who are married and filing jointly, it is $150,000, while it is $112,500 for head of household.
The stimulus payments get reduced at the rate of $5 for every increase of $100 in the income declared. It goes down to 0 for individuals earning $99,000 under the adjusted gross income.
The corresponding figure for married couples who file jointly is $198,000. It is important to note that the additional $1,100 is yours even if one is not eligible for a third stimulus check. all you have to do is meet all the criteria for a first and second stimulus check.
So, assuming that you met all the qualifying requirements for the complete benefits for both the stimulus payments, couples who file with a single dependent child qualify for $1,200 for the first stimulus check and an extra $500 for the baby born in 2020. There is another $600 for the second stimulus payment and an extra $600 for the newborn child. So when you put together all the amounts, it comes to a generous $4,700.
So even if you have got the regular stimulus payment, the third stimulus check for baby born in 2020 could get you another $1,100.
Filing 2020 Returns By Parents For Third Stimulus Check For Baby Born In 2020
The most direct way to claim any missing stimulus check is to file your latest income tax returns, which in this case is the 2020 income tax returns. Filing the 2020 income tax return is the quickest way to update your latest details with the IRS. The authorities will then process the updated information to calculate your third stimulus check. For a baby born in 2020, filing the tax return should suffice to send the extra $1,100 to eligible parents.
Filing your returns will also help you to set up direct bank deposits with the IRS if you do not avail of such a facility at present.
Any stimulus amount that gets added up to your claim is sent as a plus-up payment if you have already received your first installment of the third stimulus check. These plus-up or follow-up payments are sent as the IRS recalculates the amount due to you based on fresh details that you have submitted.
The third stimulus check for baby born in 2020 could also come to you as a plus-up payment in all probability as the initial third stimulus payments were mostly based on the 2019 returns. So you could be in for an unexpected bonanza when you file your 2020 returns. These two payments of $500 and $600 escaped the attention of many as they were sanctioned under the first and second stimulus payments under the previous administration.
An Additional Stimulus Check For Qualifying Dependents
Under the third round of stimulus payments, the list of eligible dependents has been widened to include dependents of all ages.
Under the first and second round of stimulus checks, dependents who qualified had to be 16 years or under. But under the baby born in 2020 third stimulus check, 17-year-olds and even adult dependents (those 18 and above), are eligible for an identical amount of $1,400. This amount is added to the check of the parent claiming the stimulus money.
This rule added another 13.5 million older adults, college students, and older children to the existing list of dependents. And the best way to update information on the third stimulus check for baby born in 2020 and other dependents would be to file your returns or go for an IRS Free Filers Tool ( for that your earnings should be below $72,000.
Making The Most Of The Third Stimulus Check For Baby Born In 2020
If you have received the third stimulus check for baby born in 2020, it is time you took a prudent decision for your child. But this is assuming that you do not need the amount for your immediate expenses. The amount could be invested in your child’s future educational expenses. A 529 plan, which is an education savings plan could in the future be used to pay for the child’s college education and even K-12 expenses like private schools. You are also allowed to prepay for your child’s tuition at present-day rates.
So if your family welcomed a baby last year, then make sure you claim for the extra stimulus check amount that you are entitled to. Otherwise, the baby born in 2020 amount might get forfeited which you could have used to help the baby.